bgrim: opportunity day · 2020. 12. 15. · bgrim investor presentation thailand cambodia laos...

BGRIM: Opportunity DayThe Third Quarter of the Year 2020

BGRIM INVESTOR PRESENTATION

BACKGROUND

HIGHLIGHT

CAPITAL STRUCTURE

FINANCIAL PERFORMANCE

1


BGRIM Strength in Numbers

One of the largest SPP in Thailand

A leader in gas-fired SPP with the highest number

of projects and equity MW

st

Years of energy experiences

in Thailand

Experienced management team

with good track record in power

development

GW of total generating

capacity

3.0 GW in operation with diversified

portfolio

EBITDA margin

in Q3’2020

Strong operating result from highly

efficient power plants

24 3.7 30%1

*Information updated as of October 2020

2


85.1%

12.9%

0.5% 1.5%

25.6%

24.5%

10.6%

8.7%

8.0%

4.9%

10.6%

4.7%3.0%

Total 1,029 MWIn Operation

862 MW*

Solar Group

876 MW

(54 MW Under

Development

including 15 MW

Hybrid U-Tapao)

Hydro Group

133 MW

(98 MW Under Development)

Wind Group

16 MW

(Under Development)

Bien Hoa 90 MW

(with 13 MW back up for power trading)

Total 2,640 MWIn Operation 2,144 MW*

Amata City (Chonburi)

675 MW

(Including ABP1&2

Replacement of 140 MW each)

Amata City (Rayong)

647 MW

Bangkadi

229 MW

Laem Chabang

196 MW(Including BPLC1

Replacement of 140 MW)

WHA Chonburi 1

130 MW

BGPR1&2

280 MW

(Under Development)

Well-Diversified Portfolio with Expertise in Green-Field Development

GAS – FIRED POWER PLANT (INDUSTRIAL ESTATE) 71.0%

TRANSMISSION & DISTRIBUTION 0.4%

Waste to Energy (IWTE)

5 MW

RENEWABLE GROUP 28.5%

Poi Pet PPSEZ 14 MW**

*As of October 2020

**Transmission & distribution and solar rooftop are not included in total installed capacity

SOLAR ROOFTOP Solar rooftop for industrial

users and commercial

buildings with up to 100 MW

opportunity**

3

WHA (Map Ta Phut)

280 MW(Including SPP1 Replacement

of 140 MW each)

Angthong Province

123 MW

Type of Energy

Installed MW Equity MW

Total Capacity

% In Operation

Total Capacity

% In Operation

Gas fired 2,560 MW 69.5 2,144 MW 1,783 MW 68.8 1,317 MW

Solar 861 MW 23.4 822 MW 596 MW 23.0 557 MW

Hydro 133 MW 3.6 35 MW 95 MW 3.6 25 MW

Hybrid 95 MW 2.6 95 MW 3.7

Wind 16 MW 0.4 15 MW 0.6

IWTE 5 MW 0.1 5 MW 2 MW 0.1 2 MW

Backup

for power

trading

13 MW 0.4 13 MW 4 MW 0.2 4 MW

Total 3,682 MW 100 3,019 MW* 2,590 MW 100 1,905 MW*

U-Tapao Area (Hybrid)

80 MW

(Under Development)


Delivery of Reliability in Form of Electricity and Steam

FOOTHOLD IN TOP INDUSTRIAL ESTATES WITH

MULTIPLE OF GENERATING UNITS IN EACH LOCATIONSELECTED TOP IU FOR ELECTRICITY AND STEAM

THAILAND

CAMBODIA

LAOS

VIETNAM▪ 1 power plant

▪ 130 MW

▪ 3 generating units

▪ 2 power plants

▪ 229 MW


▪ 2 power plants

▪ 280 MW


▪ 5 power plants

▪ 647 MW


▪ 5 power plants

▪ 732 MW


▪ 2 power plants

▪ 159 MW


WHA

Chonburi 1

Bangkadi

BGPR1&2

Amata City

Rayong

Amata City

Bien Hoa

Gas-fired cogeneration power plants Transmission and Distribution

▪ 2 power plants

▪ 124 MW


WHA Eastern

(Map Ta Phut)

Amata City

Chonburi

Laem

Chabung

Poi Pet

PP SEZ

4

▪ 1 power plant

▪ 123 MW


Angthong

Province


THAILAND

CAMBODIA

LAOS

VIETNAM

▪ 8 power plants

▪ 60 MW

▪ 1 power plant

▪ 8 MW

▪ 1 power plant

▪ 8 MW

BGYSP

Solar WVO-Coop

Nam Khao

▪ 5 power plants

▪ 67.5 MW

BGPSK

TPS Com.

DT

▪ 1 power plant

▪ 420 MW

Phu Yen TTP

▪ 1 power plant

▪ 257 MW

Nam Che 1

▪ 1 power plant

▪ 15 MW

▪ 7 power plants

▪ 31 MW

Solarwa

▪ 5 power plants

▪ 39 MW

▪ 1 power plant

▪ 5 MW

PIC

XXHP

▪ 1 power plant

▪ 20 MW

Tadsakoi

▪ 1 power plant

▪ 30 MW

▪ 2 power plants

▪ 16 MW

Bo Thong

Expanding Renewable Power Rapidly in the Region with Strong Partners

5

▪ 1 power plant

▪ 39 MW

Ray Power

Solar power plants

Hydro power plants

Waste to energy power plant

Wind power plant


BACKGROUND

HIGHLIGHT

CAPITAL STRUCTURE


6

7

Highlight

▪ Partner with PEA and PEA ENCOM

▪ Phu Yen TTP’s the first Green Loan in

Thailand and CLMV (with Climate Bonds

Initiative Certification)

▪ Trading Renewable Energy Certificate (REC)

▪ Thailand Sustainability Investment (THSI) List

2020 (as the 3rd consecutive year)

▪ Excellent CGR scoring by IOD

▪ New-high NNP to owner of THB 745 million

▪ New-high EBITDA margin of 30.4%

▪ 28% q-on-q recovery in IU volume

▪ Completing gas-turbine upgrade of the 4th

SPP in Aug-Oct 2020, to save gas cost by

THB50-70 million per annum

▪ THB 20 billion cash on hand

New records in Q3’2020 Operational Outlook

Key Developments

▪ SCOD of 39 MW solar farm in Cambodia

by end of 2020 and 16 MW wind farm in

Thailand by Q1’2021

▪ 3.5 GW new potential projects (both greenfield

projects and M&A) and raise total portfolio to 7.2

GW

▪ Aim to start importing LNG to existing power plants

in 2021

12-month Target

▪ IU volume returned to normal in in Sep-Oct 2020.

▪ New IU clients with total PPA of 42 MW in 2021

▪ SPP gas price forecasts by PTT

▪ Q4’2020F: down 18% y-on-y,

down 7% q-on-q

▪ 2021F: down 9% y-on-y to

THB 223 /mmBTU

8

ESG Roadmap

Thailand Sustainability

Investment (THSI) List 2019by Stock Exchange of Thailand

Target to enter DJSI index by 2022

Green Financing of the Yearby The Asset

Sustainability

Report Awardsby SEC, CSR Club &

Thaipat Institute

Thailand

Sustainability

Investment (THSI)

List 2018by Stock Exchange

of Thailand

ESG100 Company of 2018by Thaipat Institute

2018 CGR Scoreby Thai Institute of Directors Association (IOD)(2018-2019)

Thai CACby Thailand’s Private Sector Collective Action

Coalition Against Corruption

2019 The Green Financial LeaderGreen Bond Awards 2019

by Climate Bonds Initiative


Sustainability Disclosure Awards 2019by Thaipat Institute

Platinum Award Excellence in ESG

& Best Initiative in Environment

Responsibility by The Asset

MSCI ESG Rating

of BBB, 2020by MSCI

FTSE4Good Index Series:

Emerging Markets Index & ASEAN 5 Indexby FTSE Russell

Phu Yen

Green Loanby Climate Bonds Initiative

“Very Good”

2020


Thailand Sustainability

Investment (THSI) List 2020by Stock Exchange of Thailand

CGR Scoreby Thai Institute of

Directors Association (IOD) (2020)

“Excellent”


Partner with PEA and PEA ENCOM

9

✓ Exploring business opportunities

with PEA and PEA ENCOM

▪ Independent Power Supply (IPS)

▪ Service coverage expansion

▪ Microgrid and Smart Microgrid

System

▪ Renewable project expansion

✓ Saving investment cost of

transmission lines and other

facilities no less than THB 1,000

million


LNG to Power and LNG Value Chain

10

Field

Development

Liquefaction

Plant

Shipping Storage

and

Regassification

Pipeline

Transmission

1 USD/ mmBTU*

Note: *Based on regulation

November 2, 2019:

MOU signing with

PetroVietnam Power

for jointly study and

develop the LNG-to-power

business

May 27, 2020:

LNG Shipper license

approval from the

Energy Regulatory

Commission (ERC)

for 650,000 ton/year

Power Plants

November 11, 2020:

Committee on Energy

Policy Administration

(CEPA) acknowledged Gas

Liberalization-Phase II

with the process to

establish special team

October 27, 2020:

LNG Approval from

ERC to be used for

existing SPPs from

2020 onwards


2019Plants 2018 2020

Nov Jan

Jul

Feb Nov

Jun-Jul

Aug-Oct

Feb

Jan

2 Gas Turbines 1 Gas Turbine

2021 2022 2023

LTSA Upgrade Schedule

BPWHA

ABPR2

ABPR1

ABP5

ABP3

ABP4

1

2

3

4

5

6

Asian Power Award 2020:

“Power Plant Upgrade of the Year-Thailand”

by Asian Power Magazine

Q3’2018 UPDATEQ3’2018 UPDATE11

Entering the LTSA for Enhancing Performance of Operating Project

Benefits from the LTSA with Siemens

Enhance AvailabilityTo increase availability or reduce a number of

maintenance days from 18-20 days to 10-15 daysMore operating days

To predict the degradation of a machine more accurateMoving towards

DigitalizationMore MW for IUs

Enhance EfficiencyLower gas

consumption by 1%To enhance heat rate of gas turbine after performing

major overhaul and doing design improvement


Q3’2018 UPDATEQ3’2018 UPDATE

*For PPAs expired in 2019 - 2021

Key consideration

EGAT PPA period (years)

EGAT contract capacity (MW)

EGAT Tariff

IU Tariff

Contracted heat rate with

EGAT (BTU/KWh)

BGRIM’s power plants applied

with this scheme

Replacement

25

Up to 30

Capacity Payment +

Energy Payment

Benchmark with PEA

7,409

ABP1, ABP2, BPLC1,

BPAM (2 plants)

Extension*

1-3

Up to 60

Energy Payment

Benchmark with PEA

8,282

ABP1, BPAM (2 plants)

Existing

21-25

Up to 90

Capacity Payment +

Energy Payment

Benchmark with PEA

8,600

ABP1, ABP2, BPLC1,

BPAM (2 plants)

SPP Extension and Replacement Scheme

ABP1

2019 2020 2021 2022 2023 2024 2025

ABP2

BPLC1

BPAM #1

BPAM #2

166 MW, (15.3% holding) 140 MW, (51.2% holding), 25 years

140 MW, (51.2% holding), 25 years


171 MW, (15.3% holding)

103 MW, (100.0% holding)

62 MW, (75.0% holding)

62 MW, (75.0% holding)

62 MW, (75.0%)

62 MW, (75.0%)



12

EPC & LTSA Signing PPA Signing Secure Financing Start Construction SCOD

166 MW, (51.2% holding)

Milestones


13

ACHIEVED COD IN TIME AND WITHIN BUDGET

Robust Growth Pipeline from Committed Projects with a Number of Potential Projects

*Based on committed projects

2018 2019 2020 2021 2022 2023 2024 2025

ABPR 3-5(399 MW)

Solar WVO-Coop

2,076

2,8963,058

1,217 MW

Equity Capacity

1,819 MW

Equity Capacity

BPAM(124 MW)

Nam Che(15 MW)

(31 MW)

DT (420 MW)

Phu Yen TTP(257 MW)

ABP1 Extension(166 MW)

PIC (5 MW)

ATP(123 MW)

Ray Power(39 MW)

Bo Thong 1&2(16 MW)

BPAM Extension(124 MW)

Hybrid U-Tapao(15 MW)

3,089

1,945 MW

Equity Capacity

3,270

5 SPP

Replacement(700 MW)

Nam Khao 4(15 MW)

Tadsakoi(30 MW)

Nam Khao 2(15 MW)

3,645

BGPR 1, BGPR 2(280 MW)

Hybrid U-Tapao(80 MW) +

(ESS 50 MWh)

Nam Khao 5(8 MW)

Nam Khao 3(15 MW)

7,200

Nam Khao 1(15 MW)

3,6603,682

1,974 MW

Equity Capacity

2,192 MW

Equity Capacity2,563 MW

Equity Capacity

2,574 MW

Equity Capacity2,590 MW

Equity Capacity

Gas

Solar

IWTE

Hydro

Wind

Potential Projects


PHILIPPINES

Diligently Invest in Suitable Opportunities via Strong Networks

14

THAILAND

LAOS

MALAYSIA

VIETNAM

CAMBODIA

KOREA

OMAN

Gas

Solar

Hybrid

Hydro

Transmission and

Distribution System (T&D)

Wind

LNG

Solar Rooftop

MYANMAR


BACKGROUND

HIGHLIGHT

CAPITAL STRUCTURE


15


16

BGRIM optimizes Capital Structure through Well Managed Debt Profile

FINANCING COSTS

THB 68,980 mn(as of 30 September 2020)

Project Level (In Operation)

Loan (THB)

THB 21,760 mn

THB 10,566 mn

Project Level

Debenture

THB 5,840 mn

Corporate Level

Loan

THB 14,634 mn

Corporate Level

Debenture

21%

THB 15,679 mnProject Level

(In Operation)

Loan (USD)

8%

23%

32%

15%

THB 500 mn

Project Level

(Under Construction)

Loan (THB)

1%

• Only 29% loan represents loan at the corporate level. The

remaining 71% contributes to debts at power plant level with

limited recourse to sponsor

• Interest obligations of almost all power plant level debts are

swapped to fixed rate

• Only 15% of total loan as of 30 September 2020 is denominated

in USD which is matched with a proportion of EGAT tariff indexation

to USD at project level, so called “Natural Hedge” strategy

4.9%

4.7%

4.6% 4.6%

4.3%

0.04

0.04

0.04

0.04

0.04

0.05

0.05

0.05

0.05

0.05

0.05

2016 2017 2018 2019 9M'20

• Financing costs at 4.3% in 9M’2020 due to altering of financial

structure according to debt refinancing.

Debt Profile


0.4x 0.6x1.0x 1.3x

(1.50) (1.40) (1.30) (1.20) (1.10) (1.00) (0.90) (0.80) (0.70) (0.60) (0.50) (0.40) (0.30) (0.20) (0.10)

- 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50

Dec-19 Sep-20

Company only Consolidated

Gearing Ratios

• The consolidated net interest-bearing debt to equity ratio

increased to 1.3x while remained at 0.6x for B.Grimm

Power only as a result of the consolidation of ATP and

EPC liabilities refinancing of DT and the impact of new

financial reporting standards –TFRS9 on the equity.

17

Capital Structure and Dividend Policy

• Manage debt and equity funding to optimize capital structure

• Seek to obtain financing at project level

• Limited-recourse project loan with back-end equity

• Target 3.0x debt to equity project financing at outset,delivering over project life

• Consolidated debt included loans at power plants becauseBGRIM holds majority in most of the projects

Note: Net Interest-bearing debt is Interest-bearing debt less cash, cash equivalents and short-term investments.

NET INTEREST-BEARING DEBT

TO EQUITY RATIO

• Minimum 40% of normalized net profit of consolidated financial

statements

DIVIDEND POLICYCAPITAL STRUCTURE

(Unit: THB)

DIVIDEND PER SHARE

0.15 0.15 0.15

0.170.22

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

2017 2018 2019 2020

2H

1H

45% 45% 45%Dividend payout based on

normalized net profit

0.30 0.320.37


CAPITAL STRUCTURE


18

BACKGROUND

HIGHLIGHT


EBITDA AND

EBITDA MARGIN

19

Top Line and EBITDA Grew Strongly

3,7143,603

3,749

New record of GWh sales

• Total revenue declined 4.8% y-on-y in Q3’2020 mainly from the link

between Energy Payment revenue (which is a fuel-passthrough

mechanism) and a declining gas cost per unit. On the other hand, total

electricity sales volume increased 0.9% y-on-y to 3,749 GWh from

• Continued capacity expansion with an acquisition of 123 MW ATP

in early 2020

• New IU clients with 15 MW IU PPA in 9M’2020

• Increasing renewable volume by 2021

Electricity

Steam

(Unit: THB mn)TOTAL REVENUES

97% 98% 97%

97%98%

11,751

Q3'19 Q2'20 Q3'20 9M'19 9M'20

2%

2%Others

-565 / -4.8% YoY

-57 / -0.5% QoQ

+778 / 2.4% YoY

11,243 11,186

33,65232,874

10,853

2%2%

3%1%

2%1% 2%

10,047

3,326 3,221 3,396

8,548

9,896

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Q3'19 Q2'20 Q3'20 9M'19 9M'20

EBITDA increased continually:

• The y-on-y EBITDA growths were 2.1% in Q3’2020 mainly from

capacity expansion, additional industrial users, continued improvement

in plant efficiency, and declining gas cost per unit

• EBITDA margin increased to a new record of 30.4% in Q3’2020

from

• Continued gas-turbine upgrades with the completion of the fourth

project in October

• Increasing renewable revenue which gives relatively higher

EBITDA margin

• 12.6% y-on-y declining gas cost per unit

(Unit: THB mn)

EBITDA Margin

EBITDA

+175 / 5.4% QoQ

+70 / 2.1% YoY

+1,348 / 15.8% YoY

28.3% 28.6%

30.4%

26.0%

29.4%


EGAT

63%

IU-VN

3%

Steam-TH

2%

EVN

7%

PEA & MEA

3%

Long-Term PPA with and Benefit from Well-Establishment of PPA

Q3’2020 REVENUE BREAKDOWN BY CUSTOMER WEIGHTED AVERAGE REMAINING PPA LIFE

THB 11,186 mnQ3’2020

Sales and Service Income

LONG-TERM PPA STRUCTURE

• EGAT : 21 to 25 years tenor with take-or-pay structure

• PEA / MEA : up to 25 years tenor (VSPP of solar, wind, waste to energy)

• EDL : 25 years tenor (hydro)

• EVN : 20 years tenor (solar)

• Industrial Users : up to 15-year tenor with track record of extensions

Secured Gas Supply with PTT covering respective PPA tenors

Gas price pass-through at contracted heat rate under EGAT PPA

23.7

21.2

18.7 17.9

8.7

EDL PEA / MEA EVN EGAT Industrial users- electricity(Thailand)

Track Record of

Extensions

Years

Years

YearsYears

Years

Note: Weighted Average Remaining PPA life is calculated as the average remaining contractual term remaining from 30 September 2020 to expiry

weighted by the aggregate contracted capacity under the relevant agreement

15.0

Years

20

Most has no impact

from COVID-19

IU-TH

21%

EDL

1%

Auto part37.9%

Tire19.4%

Industrial Gas9.9%

Home Appliance

9.0%

Packaging7.7%

Consumer3.8%

Food and Beverage

2.6%

Others 2.3%

Electronic 1.9%

Chemical 1.8%

Metal 1.8% Textile 0.8%

Shipyard 0.6%

Construction 0.5%

Volume breakdown by sector

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

2019 2020

7% YoY

21

Industrial Users (IUs) in Q3’2020

◼ Strong q-on-q recovery of 27.9% in Q3’2020

◼ Continued recovery in domestic demand and

benefit from orders shifted from countries

with COVID-19 outbreak.

◼ All key sectors had strong recovery with

q-on-q volume growth as follow:

◼ Auto: 50.9%

◼ Tire: 47.7%

◼ Home appliance: 12.3%

◼ Industrial gas: 8.0%

◼ Packaging and electronics grew 16.2% and

12.2% y-on-y in 9M’2020 respectively.

IU Volume


261.56269.57 271.02 266.33 261.09 256.8

241.3 236.01228.35

211.94 212.48225.69 220.78 224.28 220.48 224.29

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21

PTT Gas Price (THB/mmBTU)Ft (THB/kWh)

Ft and Gas Price Trend

22

-0.1160 -0.1160 -0.1160 -0.1160 -0.1160 -0.1160 -0.1160 -0.1160-0.1243 -0.1243 -0.1243

Source: ERC and PTT

-0.1243

Based on 2019 figures;

◼ THB 0.01 change in IU tariff would impact earnings by THB 18 million per annum.

◼ THB 1/mmBTU change in gas cost would impact earnings by THB 15 million per annum.

-0.1532 -0.1532 -0.1532 -0.1532


388330

134 139174 154

98 98

Q3'19 Q3'20 Q3'19 Q3'20 Q3'19 Q3'20 Q3'19 Q3'20Amata City Amata City Laem Chabang Others (Bangkadi,

Chonburi Rayong WHA Chonburi, Map Ta Phut)

23

2,419

795

2,507

721

Q3'19 Q3'20 Q3'19 Q3'20


EGAT

• EGAT sales volume increased 3.7% y-on-y primarily due to the

acquisitions of ATP in March 2020.

• Electricity price sales to EGAT decreased 8.7% y-on-y because the

energy payment is generally adjusted to reflect changes in natural gas

price which decreased 12.6% during the period.

IU Thailand

• IU Thailand sales volume decreased 9.3% y-on-y due to the economic

slowdown from COVID-19 pandemic. However, we already noticed

significant m-on-m recovery for 4 consecutive months. On the monthly

basis, y-on-y volume sales turns positive in September 2020.

• Electricity price sales to industry users Thailand decreased 0.3% y-on-y

which is in line with Ft charge announced by the ERC.

EGAT Industrial Users (TH)

(Unit: GWh) (Unit: GWh)

3.092.82

3.29 3.28

Q3'19 Q3'20 Q3'19 Q3'20EGAT Industrial Users (TH)

(Unit:THB/KWh)ELECTRICITY SELLING

PRICE YoY (Unit:THB/mmBTU)

SALES VOLUME FOR EACH INDUSTRIAL USER (TH)

YoY

ELECTRICITY SALES

VOLUME YoY

KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE YoY

Electricity Sales Volume Increased YoY for EGAT and Decreased for IU (Q3’2019 vs Q3’2020)

Q3'19 Q3'20

EFFECTIVE GAS

COST

269.22

235.18

0.0%


241

330

100139 134 154

88 98

Q2'20 Q3'20 Q2'20 Q3'20 Q2'20 Q3'20 Q2'20 Q3'20Amata City Amata City Laem Chabang Others (Bangkadi,

Chonburi Rayong WHA Chonburi, Map Ta Phut)

24

2,557

563

2,507

721

Q2'20 Q3'20 Q2'20 Q3'20


EGAT

• EGAT sales volume decreased 2.0% q-on-q primarily due to ABPR1-2scheduled maintenance.

• Electricity price sales to EGAT decreased by 7.2% q-on-q because the

energy payment is generally adjusted to reflect changes in natural gas price

which decreased in Q3’2020.

IU Thailand

• IU Thailand sales volume increased 27.9% q-on-q primarily due to strong

recovery from all key segments especially automotive and tires with benefitsfrom orders shifted from COVID-19 outbreak countries.

• Electricity price sales to industry users Thailand decreased 1.2% q-on-q

which is in line with Ft charge announced by the ERC.

EGAT Industrial Users (TH)

(Unit: GWh) (Unit: GWh)

3.042.82

3.32 3.28

Q2'20 Q3'20 Q2'20 Q3'20EGAT Industrial Users (TH)

(Unit:THB/KWh)ELECTRICITY SELLING

PRICE QoQ (Unit:THB/mmBTU)

SALES VOLUME FOR EACH INDUSTRIAL USER (TH)

QoQ

ELECTRICITY SALES

VOLUME QoQ

KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE QoQ

Electricity Sales Volume Decreased QoQ for EGAT and Increased for IU (Q2’2020 vs Q3’2020)

Q2'20 Q3'20

EFFECTIVE GAS

COST

262.41

235.18


25

8,5

21

7,5

61

7,5

828,5

83

7,6

16

7,6

23

1st Round SPP 2nd Round SPP 3rd Round SPP

2019 9M'2020

High Standard Technology Leads to High Efficiency & Availability

96.5 96.6 98.197.895.0

99.0

70

75

80

85

90

95

100

1st Round SPP 2nd Round SPP 3rd Round SPP

2019 9M'2020

Our SPP power plants have lower heat rates than contracted heat rates.

Most of our gas-fired cogeneration power plants have availability factors of above 90% since COD

HIGH AVAILABILITY (AVAILABILITY FACTOR)

Note: (a) Electricity equivalent generations of steam dispatched are calculated according to efficiency calculation of EGAT PPA (BPAM generation 1)

1st Round SPP consist of ABP1, ABP2, BPLC1 and BPAM

2nd Round SPP consist of ABP3, ABPR1, ABPR2, BIP1

3rd Round SPP consist of ABP4, ABP5, ABPR3, ABPR4 ABPR5, BIP2, BPWHA and ATP

(%)

HIGH EFFICIENCY (HEAT RATE)

Contracted Heat Rate 8,600 BTU/kWh

Contracted Heat Rate 8,000 BTU/kWhContracted Heat Rate 7,950 BTU/kWh

(BTU/kWh)


26

NNP-Owner of the Parents Grew 21.2% y-on-y in 9M’2020

Earnings surged impressively

• NNP-owner of the parents increased 4.2% y-on-y to a new-high

level of THB 745 million in Q3’2020.

• 9M’2020 NNP-owner of the parents increased 21.2% y-on-y to

THB 2,101 million.

• With unrealised Fx loss and other non-operating items, net profit-

owner of the parents is THB 501 million in Q3’2020.

859

1,245

745

31077 500

UnrealisedFx Loss

Non-operatingitems

NNP NNP to NCI NNP to Owner

(Unit: THB mn)

RECONCILE NORMALISED NET PROFIT (NNP) OF Q3’2020

Net Profit

10.4 % 9.8%11.1%

NNP Margin

NNP to owner

NNP to Non-Controlling Interest (NCI)

1,7332,101

1,093

1,4042,825

3,505

0

500

1000

1500

2000

2500

3000

3500

4000

9M'19 9M'20

8.6%10.4%

715 674 745

510428

500

1,225 1,102

1,245

0

500

1000

1500

Q3'19 Q2'20 Q3'20

+680 / 24.1% YoY

+20 / 1.6% YoY

+143 / 13.0% QoQ

NORMALISED NET PROFIT (NNP)(Unit: THB mn)

501Net Profit

to owner

Reconciliation Items:

• Unrealised Fx loss of THB 310 million in Q3’2020 was a non-cash item from

the balance of US dollar debt and payables and the depreciation of local

currencies (THB and VND) against US dollar in this period.

• Non-operating items primarily due to

1) A non-cash item of THB 35 million in Q3’2020 accretion cost from a

discounting of long-term construction payables

2) A remuneration program’s expense of THB 16 million in Q3’2020

3) A non-refundable VAT of THB 26 million in Q3’2020 from construction

of BGSENA projects in 2015


27

Strong Financial Position Thanks to the Well-Managed Capital Structure

126,978121,693

Cash, cash Equivalents and ST investments

OtherCurrent Assets

(Unit: THB mn)

Assets

Total

Liabilities

Total

Equity

Liabilities and Equity

Non- Current Assets

Financial Position as of 30 September 2020

Total assets

• Total assets increased by 4.3%, primarily due to the

continual expansion of project portfolio both local and

overseas.

Total liabilities

• Total liabilities increased by 7.5%, primarily due to debt

consolidated after ATP acquisition and the record of Derivative liabilities and Liabilities under long-term lease agreement

according to new financial reporting standards-TFRS16 and

TFRS9.

Total Equities

• Total equity decreased by 2.4%, primarily due to the record

of loss in hedging reserve in other components of equity

according to new financial reporting standards –TFRS9.

STATEMENT OF FINANCIAL POSITION

AS OF 30 SEPTEMBER 2020

126,978121,693

68%70%

32%30%

31 Dec 19 30 Sep 20

19% 16%

8%8%

73%76%

31 Dec 19 30 Sep 20


Appendix

28


0%

50%

100%

150%

200%

250%

300%

Jan

-05

Jul-

05

Jan

-06

Jul-

06

Jan

-07

Jul-

07

Jan

-08

Jul-

08

Jan

-09

Jul-

09

Jan

-10

Jul-

10

Jan

-11

Jul-

11

Jan

-12

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Jul-

17

Jan

-18

Jul-

18

Jan

-19

Jul-

19

Jan

-20

Jul-

20

Adjusted Ft Index Gas price Index

Ft (Fuel Adjustment Charge) is a component of electricity market tariff, announced by Energy Regulatory Commission (ERC) every 4 months to reflect

EGAT’s overall cost electricity which includes EGAT’s power generations, its purchase from private sector and the import from neighboring countries

➢ In general, natural gas contributes approximately 70% of total fuel used to produce electricity in Thailand. Thus, change in gas price has high correlation

with change in Ft.

➢ In addition, the gap between these two indexes is widen since 2011 – when renewable business started commencement in Thailand.

BGRIM’s electricity tariff for IU is normally benchmarked with PEA (base tariff+Ft) which generally moves in the same direction with gas price.

29

High Correlation between Gas Price and Ft

Change in Ft vs Gas Price in 2005-2020Introduction of

renewable energy

Adjusted Ft Index

Gas Price Index

Core subsidiaries and associates only

Corporate Structure

60.0%

30

Core subsidiaries and associates only

Operational Power Plants: Conventional

Note: As of September 2020

(a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant

(b) Amata B.Grimm Power owned 30.0% of ABPIF’s units and consequently, our economic ownership of Amata B.Grimm Power 2 Limited was 15.3%

(c) ABP1, ABP2, BPCL1 and BPAM got the approval to build new replacement projects under the 25-year PPA with the scheduled commercial operation in 2022

(d) Acquired from Sime Darby Energy on 30 June 2014

(e) We instead purchase power directly from a subsidiary of EVN which we then on-sell to industrial users in Amata City Bien Hoa Estate31

Company Abbreviation Fuel Type CODEconomic

Ownership %(a) Installed Equity Offtaker /PPA Expiry

EGAT Contracted

Capacity (MW)

IU Electricity

Contracted

Capacity (MW)

Steam Contracted

Capacity

(MW) (MW) Program (t/h)

Amata Nakorn Industrial Estate, Thailand

Amata B.Grimm Power 1 ABP1 Gas-Fired Cogen Sep-98 51.20% 166.4 85.2 EGAT (SPP) Sep-22(c) 60.0 102.2 6.0

Amata B.Grimm Power 2 ABP2 Gas-Fired Cogen Sep-01 15.3%(b) 171.2 26.2 EGAT (SPP) Sep-22(c) 90.0 96.8 16.0

Amata B.Grimm Power 3 ABP3 Gas-Fired Cogen Oct-12 60.70% 132.5 80.4 EGAT (SPP) Oct-37 90.0 45.1 13.0

Amata B.Grimm Power 4 ABP4 Gas-Fired Cogen Nov-15 55.50% 131.1 72.8 EGAT (SPP) Nov-40 90.0 32.5 -

Amata B.Grimm Power 5 ABP5 Gas-Fired Cogen Jun-16 55.50% 131.1 72.8 EGAT (SPP) Jun-41 90.0 33.4 13.0

Subtotal 732.3 337.4 420.0 310.0 48.0

Amata City Industrial Estate, Thailand

Amata B.Grimm Power (Rayong) 1 ABPR1 Gas-Fired Cogen Nov-13 61.70% 123.3 76.1 EGAT (SPP) Nov-38 90.0 17.0 14.0

Amata B.Grimm Power (Rayong) 2 ABPR2 Gas-Fired Cogen Jun-13 61.70% 124.4 76.8 EGAT (SPP) Jun-38 90.0 24.0 14.0

Amata B.Grimm Power (Rayong) 3 ABPR3 Gas-Fired Cogen Feb-18 55.50% 133.0 73.8 EGAT (SPP) Feb-43 90.0 18.0 -

Amata B.Grimm Power (Rayong) 4 ABPR4 Gas-Fired Cogen Jun-18 55.50% 133.0 73.8 EGAT (SPP) Jun-43 90.0 20.0 -

Amata B.Grimm Power (Rayong) 5 ABPR5 Gas-Fired Cogen Oct-18 55.50% 133.0 73.8 EGAT (SPP) Oct-43 90.0 40.0 -

Subtotal 646.7 374.3 450.0 119.0 28.0

Laem Chabang Industrial Estate, Thailand

B.Grimm Power (Laem Chabang) 1 BPLC1 Gas-Fired Cogen Jul-01(d) 100.00% 103.0 103.0 EGAT (SPP) Jul-22(c) 60.0 50.1 46.2

B.Grimm Power (Laem Chabang) 2 BPLC2 Gas-Fired Cogen Feb-09(d) 100.00% 56.1 56.1 – – – 61.3 18.5

Subtotal 159.1 159.1 60.0 111.4 64.7

Bangkadi Industrial Park, Thailand

B.Grimm BIP Power 1 BIP1 Gas-Fired Cogen Apr-15 74.00% 114.6 84.8 EGAT (SPP) Apr-40 90.0 14.0 –

B.Grimm BIP Power 2 BIP2 Gas-Fired Cogen Jan-16 74.00% 114.6 84.8 EGAT (SPP) Jan-41 90.0 18.5 –

Subtotal 229.2 169.6 180 32.5 –

WHA Chonburi1 Industrial Estate, Thailand

B.Grimm Power (WHA) 1 BPWHA1 Gas-Fired Cogen Nov-16 75.00% 130.2 97.5 EGAT (SPP) Nov-41 90.0 31.0 –

WHA Eastern (Map Ta Phut) Industrial Estate, Thailand

B.Grimm Power (AIE-MTP) BPAM Gas-Fired CogenFeb &

Dec-9875.00% 124.0 93.0 EGAT (SPP) Feb & Dec-21(c) 110.0 4.6 48.0

Angthong Power ATP Gas-Fired Cogen May -16 70.00% 123.0 86.1 EGAT (SPP) May-41 90.0 3.0 5.0

Gas-Fired Cogen Total 2,144.5 1,317.0 1,400.0 611.4 193.7

Amata City (Bien Hoa) Industrial Estate, Vietnam

Amata Power (Bien Hoa)(e) APB Diesel Generator Apr-99 30.70% 13.0 4.0 – – – 429.7 –

Conventional Total 2,157.5 1,321.0 1,400.0 1,041.1 193.7

Operational Power Plants: Solar

Company / Project Abbreviation Location CODEconomic

Ownership %(a)

Capacity Main PPA(s)

Installed

(MW)

Equity

(MW)

Offtaker /

ProgramPPA Expiry

B.Grimm Yanhee Solar Power BGYSP 100.0% 59.7 59.7

Sai Luang 2

Pathumthani province, Thailand Dec-15

8.0 8.0

PEA (FiT) Dec-40

8.0 8.0Sai Luang 3

Sai Luang 9 7.2 7.2

Sai Luang 10 7.5 7.5

Sai Yai Nha 8.0 8.0

Sai Manow 8.0 8.0

Sai Putsa 8.0 8.0

Sai Sena 2 Ayutthaya province, Thailand 5.0 5.0

Solarwa Solarwa 47.5% 38.5 18.3

Sai Lui Rim Num

Nakhon Pathom province,

Thailand

Dec-15

8.0 3.8

PEA (FiT) Dec-40

Sai Chalouw 1 8.0 3.8

Sai Sab 8.0 3.8

BGTTRE2Saraburi province, Thailand

8.0 3.8

BGTTRE3 6.5 3.1

TPS Commercial TPS Saraburi province, Thailand Dec-15 47.5% 8.0 3.8 PEA (FiT) Dec-40

B.Grimm Solar Power (Sakaeo) 1 BGPSK Sakaeo province, Thailand Apr-16 100.0% 8.0 8.0 PEA (FiT) Apr-41

Solar WVO-Cooperatives Solar WVO-Coop Dec-18 100.0% 30.8 30.8

BSPCD Sakaeo province, Thailand 2.3 2.3

PEA (FiT)

Dec-43

BGPCCS Chachoengsao province,

Thailand3.6 3.6

BSPCB Surat Thani province, Thailand 5.0 5.0

BGSP1WN Bangkok province, Thailand 5.0 5.0

MEA (FiT)BGPLKB Bangkok province, Thailand 5.0 5.0

BGPBBO Samut Prakan province, Thailand 5.0 5.0

BGPSAI Nonthaburi province, Thailand 5.0 5.0

Dau Tieng Tay Ninh Energy DT Tay Ninh province, Vietnam Jun-19 55.0% 420.0 231.0 EVN (FiT) Jun-39

Phu Yen TTP (Phu Yen) Phu Yen TTP Phu Yen province, Vietnam Jun-19 80.0% 257.0 205.6 EVN (FiT) Jun-39

Total 822.0 557.2

Note: As of September 2020

(a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant. 32


Source: 56-1, EGAT, PEA

Some contract terms are year-on-year basis

According to concession agreements

SPP Gas-fired Cogeneration Solar PVSolar

(Vietnam)Wind Hydro iWTE

EGATIndustrial Users

PEA/MEA(FiT) EVN PEA (Adder) EDL PEAElectricity Steam

Term (years) 21 – 25 years 5 – 15 years(a) 5 – 15 years(a) 25 years 20 years 5 years 25 years 20 years

Extension option ✓ ✓ ✓ – –5 years

auto extensionUp to 10 years –

Contracted capacity

90 MW (except for

BPLC1 which is

60MW)

Depends on each contract 2.25-8 MW677 MW dc

564 MW ac8 MW 6.7 – 15 MW(b) 4.0

Secured fuel supply ✓ ✓ ✓ N/A N/A N/A N/A N/A

Natural gas cost pass-

through

✓

(at contracted heat

rate)

Partially through

Ft

Depends on

contractN/A N/A N/A N/A N/A

FX pass-through ✓Partially through

Ft– – – – – –

Inflation indexation – – ✓ – – – – –

Tariff See next page5.66 THB/kWh

4.12 THB/kWh

9.35

Cents/kWh

PEA wholesale +

10-year adder at

3.50 THB/kWh

0.065

US$/kWh

FiTF + FiTV +

8-year adder

at 0.7 THB/kWh

Applicable power plantsABP1-5, ABPR1-5, BPLC1, BIP1-2, BPWHA1, BGPR1-

2, BPAM

BGYSP

(8 projects),

Solarwa (5

projects), TPS,

BGPSK,

Solar WVO-Coop

DT1&2,

Phu Yen TTP

Bo Thong

(2 projects)

XXHP

(2 projects),

Nam Che, Nam

Khao 1-5

(5 projects)

PIC

Contractual Overview: Commercial Features

33


Electricity Tariff = Capacity Payment + Energy Payment + Fuel Saving

Payment + VAT

Capacity Payment Rate (THB/kW/month) = 𝐶𝑃0 × 𝑥 ×𝐹𝑋𝑡

𝐹𝑋0+(1− 𝑥)

Energy Payment Rate (THB/kWh) = 𝐸𝑃0 +𝑃𝑡−𝑃0

106× contracted Heat rate

Fuel Saving Payment Rate (THB/kWh) = 𝐹𝑆0 ×𝑃𝐸𝑆𝑡

10%

𝐹𝑋𝑡 = THB/ US$ Exchange Rate

𝑃𝑡 = Price for natural gas PTT sells to SPPs in a month (THB/mmBTU)

𝑃𝐸𝑆𝑡 = primary energy saving (“PES”) statistic measuring the efficiency rate of

our gas-fired cogeneration power plant in consuming natural gas in the

generation of electricity and thermal energy

Source: Company filing and data, EGAT

SPP Regulation 1992, 2005 2007 2010

Applicable power plants

ABP1-2,

BPLC1,

BPAM

ABP3,

ABPR1-2,

BIP1

ABP4-5,

ABPR3-5,

BIP2,

BPWHA, ATP

Base Capacity Payment Rate

(𝐶𝑃0) (THB/kW)302.00 383.66 420.00

Base Exchange Rate (𝐹𝑋0)

(THB/US$)27 37 34

US$THB FX indexation (𝑥) 0.8 0.5 0.5

Base Energy Payment Rate

(𝐸𝑃0) (THB/kWh)0.85 1.70 1.85

Base Price for Natural Gas

PTT sells to SPPs (𝑃0)

(THB/mmBTU)

77.0812 209.4531 232.6116

Contracted Heat Rate

(BTU/kWh)8,600 8,000 7,950

Fuel Saving Payment - ✓ ✓

Base Fuel Saving Payment

(𝐹𝑆0) (THB/kWh)- 0.36 0.36

Contractual Overview: EGAT PPA under SPP Program

TARIFF STRUCTURE

34

Major Maintenance Schedule in 2019 to 2021

Projects

Installed

Capacity

(MW)

Steam

Capacity

(ton/hr)

Type of maintenanceDuration

(days)

2019

Q1 Q2 Q3 Q4


ABP1 166.4 30.0 Major Overhaul 22



ABP4 131.1 30.0 Major Inspection 12


WHA Chonburi 1

BPWHA 130.0 30.0 Major Inspection 12

35

Projects

Installed

Capacity

(MW)

Steam

Capacity

(ton/hr)


(days)

2020

Q1 Q2 Q3 Q4

Amata City (Rayong)

ABPR1 123.3 30.0 Major Overhaul 40

ABPR2 124.4 30.0 Major Overhaul 40

WHA Chonburi 1

BPWHA 130.0 30.0 Major Inspection 15

WHA Eastern (Map Ta Phut)

BPAM 124.0 48.0 Major Inspection 25

Projects

Installed

Capacity

(MW)

Steam

Capacity

(ton/hr)


(days)

2021

Q1 Q2 Q3 Q4





WHA Eastern (Map Ta Phut)

BPAM 124.0 90.0 Major Overhaul 22

Abbreviation & Our Projects

ABBREVIATIONADB Asian Development Bank

COD Commercial Operation Date

EBITDA Earnings before Interest, Taxes, Depreciation and Amortization

EDL Electricite Du Laos

EGAT Electricity Generating Authority of Thailand

ERC Energy Regulatory Commission

EPC Engineering, Procurement and Construction

EVN Electricity of Vietnam

FiT Feed-in Tariff

FX Foreign exchange

IPO Initial public offering

IU Industrial user

IWTE Industrial Waste to Energy

JV Joint venture

kWh / GWh Kilowatt / Gigawatt-hour

MEA Metropolitan Electricity Authority

mmBTU Million Btu (unit of gas consumption)

NNP Normalized net profit

O&M Operations and maintenance

P.A. Per annum

PEA Provincial Electricity Authority (Thailand)

PPA Power purchase agreement

PTT PTT public Company Limited

ROA Return on assets

ROE Return on equity

SG&A Selling, general & administrative expense

YE Year End

YoY Year-on-Year

OUR PROJECTSABPIF Amata B.Grimm Power Plant Infrastructure Fund

ABP1 Amata B.Grimm Power 1





ABPR1 Amata B.Grimm Power (Rayong) 1





BGPSK B.Grimm Solar Power (Sakaeo) 1

BGSENA B.Grimm Sena Solar Power Limited

BGYSP B.Grimm Yanhee Solar Power

BIP1 B.Grimm BIP Power 1

BIP2 B.Grimm BIP Power 2

BPLC1 B.Grimm Power (Laem Chabang) 1

BPLC2 B.Grimm Power (Laem Chabang) 2

BPWHA1 B.Grimm Power (WHA) 1

Nam Che 1 Nam Che 1 Hydro Power Project

XXHP Xenamnoy 2 and Xekatam 1 Hydro Power Project

PIC Progress Interchem

Solar WVO Solar WVO-Cooperatives Projects

DT Dau Tieng Tay Ninh Energy Solar Plant Project (Xuan Cau)

Phu Yen TTP Phu Yen TTP Solar Plant Project (Phu Yen)

BPAM B.Grimm Power (AIE-MTP) (SPP1)

ATP Angthong Power 36


Abbreviation & Our Projects

OUR PROJECTS

BSPCD The Chon Daen agricultural cooperatives project

BGPCCS The WVO project, namely the Veteran Support Office of Chonburi

BSPCB The Ban Na Doem agricultural cooperatives project

BGSP1WN The WVO project, namely Office of Agriculture, Industry and Services Affairs

BGPLKB The WVO project, namely the Veterans General Hospital

BGPBBO The WVO project, namely the WVO Office of Terminal Production Workshop

BGPSAI The WVO project, namely the WVO Office of Security Services

37

IR Contact

Disclaimer

None of the Company makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document or otherwisemade available nor as to the reasonableness of any assumption contained herein or therein, and any liability therein (including in respect of any direct, indirect or consequentialloss or damage) is expressly disclaimed. Nothing contained herein or therein is, or shall be relied upon as, a promise or representation, whether as to the past or the future and noreliance, in whole or in part, should be placed on the fairness, accuracy, completeness or correctness of the information contained herein. Further, nothing in this document shouldbe construed as constituting legal, business, tax or financial advice.

This document is a summary only and does not purport to contain all of the information that may be required to evaluate any potential transaction and any recipient hereof shouldconduct its own independent analysis of the Company, including the consulting of independent legal, business, tax and financial advisers. The information in these materials isprovided as at the date of this document and is subject to change without notice.

.

INVESTOR RELATIONS

Email: [email protected]

Tel: +66 (0) 2710 3528

Solaya Na Songkhla


Pornratchanee Sethakaset


Gunnlapat Wichutarat


Thunruethai Makaraphan


Contact Us:

Dr. Gerhard Link Building,

5 Krungthepkreetha Road, Huamark,

Bangkapi, Bangkok 10240, Thailand

Tel: +66 (0) 2710 3400

Fax: +66 (0) 2379 4245

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